Entertainment hosts in Las Vegas are noticing a significant decrease in Gen Z (those born between 1997-2012) drinking alcohol. Paired with an overall increase in cannabis use by younger consumers, this shift could lead to great success for consumption lounges.

Las Vegas-based promoter of Pulsar Presents, Patrick Trout, has 20 years of experience promoting local music. Trout recently spoke with Las Vegas Weekly about the trend of Gen Z drinking less alcohol. “It’s something I’ve observed since the shutdown ended, but especially in the last year,” Trout said. “I’ve seen a dramatic increase in people not drinking at shows or drinking non-alcoholic stuff, but then simultaneously also wanting to smoke more. We are really seeing a generational, cultural shift.”

Trout’s observation is also reflected in a 2023 Billboard article, which cited a shift in alcohol consumption when businesses reopened after the pandemic. One Tucson, Arizona-based club manager noted that especially with shows that catered to Gen Z, alcohol sales dropped by 25%. Some researchers believe that this is partially because people pre-game, or start drinking alcohol prior to their arrival at a bar or entertainment venue, which is also a way to save money on a night out. Venue owners have attempted to switch their strategies to appeal to Gen Z attendees, such as expanding their non-alcohol options. In 2019, Global Market projected that the non-alcoholic industry could reach a value of $30 billion by next year.

Psychiatrist Akhil Anand, MD, told Cleveland Clinic that an increase in mental health awareness deters Gen Z from imbibing. “Alcohol is a depressant and never the answer to a bad day,” Anand said. “Gen Z seems to understand that concept and they’ve moved in a different direction.”

A New Frontier Data report from 2022 shows that 69% of people between 18-24 prefer cannabis over alcohol, while the same preference is seen with 70% of those 25-34, 68% of 35-44 year olds, 55% of people 45-54, 52% of 55-64, and 44% of those 65-74.

Christopher LaPorte, Vegas-based manager of Reset, a cannabis hospitality group, told Las Vegas Weekly that cannabis is becoming highly preferred over alcohol. “Everyone has the pot brownie story that was horrible. But everyone also has a lot more of ‘Oh my god, that one night with tequila,’” said LaPorte. “People are more educated now because we are out of the closet. More people know about cannabis. More cool people are very open about their cannabis-smoking habits.”

Nevada’s first consumption lounge, Smoke and Mirrors, which is owned by Thrive Cannabis, opened in late February. LaPorte helped design the consumption lounge, which made him think of listening cafes in Japan and New York, some of which only offer non-alcoholic drink menus. “There was this buzz, I would say three years ago, about this new culture of non-alcoholic spirits, and we saw that there were bars actually dedicated to that. It wasn’t just an Alcoholics Anonymous kind of center. We [thought] this might be something,” said LaPorte. “We saw a lot of products like Lyre’s and Seedlip … they were starting to percolate. And, again, it was like, how can we tie this into a cannabis lounge?’”

That thought culminated into Smoke and Mirrors’ non-alcoholic, THC-infused drinks, which LaPorte described as a way to “attract another market into the cannabis space.”

Las Vegas Weekly was given a tour of Planet 13’s new cannabis lounge, led by Frankie Anobile, who has had an extended career as a DJ and developing Vegas nightlife entertainment, but is now Planet 13’s entertainment director. While he explained that he doesn’t expect “bong service” to replace “bottle service,” he stated that offering both services is the best way to go.

Planet 13’s consumption lounge, Dazed!, opened on April 5, but the company is also planning on building a three-story, 60,000 square-foot nightclub that only serves alcohol sometime in 2025.

While Nevada state law prevents cannabis businesses from selling alcohol, and vice versa, Planet 13’s nightclub plan would allow club goers to walk next door to the club after the consumption lounge closes. “You can stay all night drinking for hours; you can’t stay all night smoking. It’s a totally different culture, from what they want musically to what their stay time is,” said Anobile. “A lot of these people don’t usually like to leave their house. They’re not the ones who want to spend an hour getting ready to go out there and be seen like they’re doing an Instagram post.”

Trout added that he’s excited to see how consumption lounges will alter the music scene. “One thing I’m really interested to see with the pot lounges that decide to utilize live music is seeing what the spread is, what genres they go after,” Trout said. “There’s some sub genres of metal like doom and stoner rock and desert rock where I think it would absolutely appeal to them to have a place like that where you can smoke and watch music.”

According to the Nevada Independent, there are 38 more cannabis consumption lounge license holders currently working on their businesses at various stages.

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An estimated 113 million viewers watched Super Bowl LVII to see if the Philadelphia Eagles or Kansas City Chiefs would win this year (the second-most watched since Super Bowl XLIX in 2015). Among those viewers were countless cannabis consumers, but cannabis sales took a slight dip in comparison to last year.

A cannabis checkout purchase averages at around $84.61, but sales from this past weekend saw a 4% drop in sales.

According to data collected by Chicago-based Fyllo, pre-rolls were the most popular products purchased this weekend at 37% of sales. In a statement to Forbes, Fyllo founder Chad Bronstein explained that the reason pre-rolls sold so well is because they are “the cheapest product in dispensaries.”

“We see this sensitivity to pricing most significant among persons aged 25 to 75, where consumer spending this year around the Super Bowl decreased significantly,” Bronstein added. Among age demographics, Fyllo also found that Gen Z consumers purchased rose considerably on Feb. 12, especially with buyers between 21 to 24 (a 10% increase from that age group).

The second most popular product category was described as “dispensary gear” by Fyllo, which saw a 20% increase this year. This was followed by “plants” at a 200% increase, and beverages at a 39% increase. Both topicals and edibles dropped in sales, with a respective 36% and 25% decrease. Bronstein believes that this is “potentially a response to pricing, driven by higher manufacturing costs, especially for those looking to optimize the cost of their high.”

Fyllo also found that while west coast sales dipped, eastern and southern states’ cannabis sales increased. Sales in Florida increased significantly by 27%, while Maine sales increased by 17%, and Arkansas increased by 7%.

While cannabis sales dropped slightly in previous years, it didn’t hamper the cannabis-related festivities of offered in Arizona where the Super Bowl took place this year. 

Trulieve Cannabis Corp.’s recent move into Arizona led with the launch of Ricky Williams’s Highsman brand. “Our expansion into Arizona is made possible through our retail partnership with Trulieve, and Abundant Organics, whose organic living soil cultivation techniques produce some of the cleanest and most flavorful flower I’ve tried,” Williams announced last month. “Both partners clearly see the Highsman vision and share the same enthusiasm for physical and mental healing as I do. Highsman is for anyone seeking greatness, mental and spiritual well-being.”

Trulieve’s CEO, Kim Rivers, was proud to partner with the former NFL player. “Trulieve is excited to launch this limited-time exclusive partnership with legendary NFL player Ricky Williams in Arizona, just weeks before the Super Bowl will be hosted in the state,” said Rivers. “Ricky was well-known for his belief in the power of cannabis during his playing days, and the Highsman brand reflects his values and passion for cannabis. We are proud to launch Highsman products in the Arizona market.”

HARA Brands partnered with Rolling Stone Live this weekend to celebrate the Super Bowl as well. The brand’s CEO and co-founder, Bryan Gerber, expressed his excitement for what this means for the industry. “We are extremely proud to represent the cannabis community at such a high-profile event during one of the biggest weekends in sports and entertainment,” said Gerber. “It’s a testament to how far this industry has come, and we couldn’t be more excited to be part of this exclusive experience alongside some of the most successful brands and talented individuals.”

WNBA star athlete Brittney Griner attended this year’s Superbowl with her wife Cherelle Griner. Following a 10-month battle for her freedom after being imprisoned in Russia for possessing a small amount of cannabis, Brittney was recently named Arizonan of the Year by Arizona Republic.

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Generation Z has been shaped by a variety of dynamics that have dominated their young lives: technology and social media, social justice movements and, according to fresh research, abundant access to cannabis.

That is perhaps the chief takeaway from a study conducted by New Frontier Data, a firm that specializes in research on cannabis policy.

The study, released last week, found that 69% of individuals aged 18-24 prefer cannabis over alcohol.

In fact, the figures were comparable among the next two age cohorts: 70% of those between the ages of 25 and 34 said they also prefer weed, while 68% of those aged 35-44 said the same.

The numbers are indicative of emerging generations of young adults who came of age at a time when a large and growing number of states and cities throughout the United States have legalized recreational cannabis for adults.

Moreover, polls routinely show large majorities of young Americans support ending the prohibition on pot.

New Frontier Data noted in the study’s analysis that Generation Z, AKA “Zoomers,” or individuals born between 1997 and 2012, “were between birth or age 15 when the first states legalized cannabis.”

“Gen Z is the first generation to be of legal consumption age in an environment with widespread adult-use cannabis access,” New Frontier Data’s vice president of public policy research Amanda Reiman told Bloomberg.

Bloomberg reported that New Frontier Data’s study “included 4,170 current cannabis consumers and 1,250 nonconsumers, found that the preference seems to fade with age, with just 44% of respondents aged 65 to 74 choosing weed over booze.”

While the research suggests a greater familiarity and comfort with cannabis, it also indicates that young people are generally less drawn to alcohol and tobacco than their older peers.

“A recent study published in the Journal of Adolescent Health by researchers at the University of Washington looked at alcohol and tobacco consumption among Gen Zers in Washington during 2014-2019,” the New Frontier researchers wrote. “Those findings saw declines in each past-month alcohol use, heavy episodic drinking, and cigarette use during that period. It is possible that the reductions were related to an overall disinterest in alcohol and tobacco among individuals in Gen Z, an observation supported in the New Frontier Data Consumer Survey.”

“Cannabis consumers aged 18-24 were most likely to say they never drank alcohol (19.7%), and the least likely to say that they drank every day (5.9%). They were also the most likely (among those under age 55) to say that they never used tobacco (39.3%), and the least likely (among those under 65) to say that they used it every day (26.3%),” the researchers continued.

Among individuals aged 18-24, “more than half (56%) reported replacing some of their alcohol with cannabis, compared to nearly 60% among ages 25-34, and more than 60% among 35-44-year-olds,” according to the study, which noted that those “rates declined further among older cohorts, from over 44% among ages 45-54, to about 43% among ages 55-64, and nearly 30% among ages 65-74.”

“The numbers suggest that young people are learning to navigate the legal cannabis landscape without adopting compulsive, increased use, and may also be less likely to consume either alcohol or tobacco, thereby making cannabis their drug of choice,” the researchers wrote in their concluding analysis. “Considering that cannabis carries a lower risk of dependence than do either alcohol or tobacco – and presents no risk of either fatal overdose (e.g., alcohol) or long-term impacts to the lungs (e.g., tobacco) – it suggests that the younger generation may indeed be making more considered choices about their consumption patterns.”

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Gen Z’s in Ontario discovered their love of weed during the pandemic. Can you blame them?

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